Six Things to Know When Hiring an Interim Executive

As the economy continues to climb out of this recession/depression, companies want to hedge their bets by hiring people on a temporary or “tryout” basis, even at the executive level. There are a lot of companies out there providing the “interim management solution” but the following are some things to know before you hire an executive or engage a firm to find one for you. (Note an interim executive as defined here is not an advisor or a temp. They are usually operating in a line management position for the company or doing a high level project.) Keep in mind the following:

1. No one ever has a “general problem”. A “generalist” is rarely the right fit for an interim assignment because companies don’t have “general problems.” Be wary of providers who have a “bench” of executives ready to jump into your company. They may require a steep learning curve to accomplish what you need. Industry experience does not always translate into the specific problem solving experience you need for your company. Hiring an interim executive is not the same as hiring a temporary A/P clerk.
2. It’s not the size of the “inventory”; it’s the caliber of the recruiting process. Interim executive search is just that, a search. An interim executive search firm should have a clearly defined process designed to find the interim candidates who will deliver results you need. A large database is meaningless without a defined recruiting process. Look for a process that will ensure you see candidates who have solved similar problems to the ones you face, not just have right key words in their resumes from a database search.
3. Be Prepared to over-hire: Many interim assignments are a result of a problem or an opportunity for a company that they don’t have the internal resources to handle. An interim executive will need to be able to quickly get their hands around the situation and start making decisions. A more senior executive is usually able to get up to speed faster.
4. Career consultants rarely are good interim executives. Interim management assignments require that executives make decisions and execute on those decisions. Most career consultants have spent their careers advising, but have not been held responsible for results. Line executives make better interim executives because they are “doers”, not advisors.
5. Don’t pay consulting rates for an interim line manager. You should be prepared to pay a premium for an interim executive, but it should still be closer to what the position would pay if it were a full time job, not an hourly consulting rate. Consultant rates are based on shorter increments of time and on only being billable an average of 50% or less. An interim executive will most likely be in a position full time for several months and an hourly rate could get cost prohibitive. Additionally, there is a good chance you may eventually hire the interim executive for the position. You don’t want to start off with the executive being paid way above the salary range and have to negotiate a substantial cut in salary.
6. It’s not a marriage, it’s a tryout. One mistake companies make is to put too much emphasis on an interim candidate’s “fit” in the organization. That should be a low priority. You are hiring this person to solve your problems over a short period of time. Whether they are a fit for your organization can be determined over the course of the assignment.
Hiring an Interim Executive to manage a company through a situation or complete a high level project can be a very effective strategy in these uncertain times, but knowing these tips can save you time and money in the process.

Mike Haggerty

Leadership: How one good apple can save the whole barrel

The private equity firm was in a world of hurt. They paid over $100 million dollars for this fast food restaurant chain and it was now losing over $40 million a year. Their investment was now effectively worth zero. They called me in to find a new CEO for the company. We interviewed many candidates, but one stood out above the rest. Why? Our questions about leadership brought out his greatest strength. You could tell from his answers he was more than a manager, he was a leader. He came from a very large fast food chain where, frankly, he wasn’t all that well liked by senior management. They were uncomfortable with his “style”. But, his “style” created a team where every person who worked for him loved him and would work their fingers to the bone for him. Not surprisingly, he took the worst region in the company and made it into the most profitable region in the company. This guy worked harder than anyone. Despite being an EVP, he wouldn’t hesitate to grab a rag and wipe down a table when he visited a restaurant. He had example after example on how he turned around his region through hard work and leadership.

When he met with our client, in 15 minutes they knew they had found their new CEO. He took the job and within two years had the company back in the black. How? Was he a management genius? No. He was successful because he was a leader, not just a manager. His team believed in him, his banks believed in him, and his private equity investors believed in him. He was able to get the performance he needed from his employees and the financial backing he needed from the financial community. Good leaders hire good leaders and he was no exception. He hired a good team and the rest is history. He was with the company for over a decade and sold it to a financial buyer for over $600 million. (Needless to say, he’s now “on the beach”.)

Lesson: Don’t confuse management with leadership. Ask candidates for examples of where they’ve demonstrated leadership. Would their subordinates say they were a strong leader? Why? Have a hiring process designed to attract and retain top quartile talent throughout your organization and your opportunities will become endless.

Is your hiring methodology designed to attract top talent? If you want to assess the quality of your hiring process, download a free copy of our 8-Point Hiring Methodology Assessment Scorecard. CLICK HERE to download.

You should also join our Hiring and Retaining Top Talent group on LinkedIn. There are many great articles and discussions on  hiring. CLICK HERE to join.

Author’s Bio

Mike is the founder of Hagerthy & Co, an executive search, training and consulting firm. For information on how to arrange for their complimentary Hiring Process Assessment go to www.hagnco.com/page13.html#HiringProcess

Try Before You Buy; Two Ways to Put The Candidate in The Position Before You Hire Them

I was a co-founder of a company called IMCOR (Interim Management Corporation.) We placed senior executives into interim line management roles and to complete high-level projects.

Our original model was to create a large database of senior executives who were in transition and then provide these executives to companies when they needed executive talent quickly and on flexible terms. We figured maybe 10% of the executives might stay on and be hired full time by the company. We were way off. In our initial years, the conversion percentage was over 30% and by the time we sold the company it was over 60%. Why? Looking back, I think there were two reasons. First, companies saw executives “under fire”. They saw them day-to-day and could witness the “cultural fit” in real time. Nothing like time in a fox hole to find out what a person is really like. Second, deliverables were very clearly defined. What did “success” look like in 3, 6 or 9 months? Because these were “interim” positions, companies clearly defined what they needed accomplished and by when. By doing so, they also defined what top quartile performance looked like. There was no ambiguity. It wasn’t a list of things they wanted in someone’s background, it was specific as to what they needed done and by when. When the candidate accomplished what they needed done, they knew they had found a top quartile candidate.

Hiring a candidate on a tryout basis is not always practical. (Although with so many candidates in transition today, it is easier to do.) If you can’t use a tryout, having a hiring process that will put the candidate in the job before you hire them is the next best thing. Start with a job spec that defines expectations. Define what success looks like in the next 12-18 months. What needs to be accomplished  and by when? Look at your current specs. Do they define expectations, what top quartile will deliver, or do they just list the duties, tasks, responsibilities and background? Then, interview candidates against those deliverables. Have they done this before? Where? How? What were the results? What worked well? What didn’t? When you narrow down your candidate list to the finalists, ask them to tell you how they would accomplish what you need done at your company. Do they understand the differences? Can they articulate how they would adapt to your culture, resources, and processes?

Lesson: The best way to see if a candidate is right for your company is to try them out in the position. If that is not available, then make sure you clearly define expectations and only advance candidates who have had similar accomplishments in like environments. As a final step, have them articulate how they would adapt to your culture/environment to accomplish your goals. Put them in the job, before you hire them.

Assess the effectiveness of your hiring process. Download our free 8 Point Hiring Methodology Assessment Scorecard. Find out if you have a great hiring process. CLICK HERE to download.

Cultural fit is why most hires fail. Do you know your company’s culture? Would everyone in your company describe it the same? To find out, download our Cultural Assessment Resource. CLICK HERE to download.

Author’s Bio

Mike Hagerthy is the founder of Hagerthy & Co, an executive search, training and consulting firm. For information on how to arrange for their complimentary Hiring Process Assessment please go to www.hagnco.com/page13.html#HiringProcess